Seagate Technology (NASDAQ:STX) Shares Climb 4.5% – Time to Buy?

Shares of Seagate Technology Holdings PLC (NASDAQ:STX) shot up 4.5% during mid-day trading on Monday. The stock traded as high as $903.00 and last traded at $887.09. 5,581,088 shares were traded during trading, an increase of 28% from the average daily volume of 4,359,481 shares. The stock had previously closed at $848.99.

Key Stories Impacting Seagate Technology

Here are the key news stories impacting Seagate Technology this week:

• Positive Sentiment: Analysts characterized the Toshiba-driven selloff as overdone, suggesting that increased capacity may take time to reach the market and that the near-term supply-demand environment remains favorable. This prompted “buy the dip” commentary and supported the recovery in Seagate shares. Western Digital and Seagate Stock Jump as Analysts Say Buy the Dip
• Positive Sentiment: Seagate’s nearline drives—used extensively by cloud and artificial-intelligence data centers—are reportedly covered by customer contracts extending well into 2027. That visibility could cushion the company from any future increase in Toshiba’s output and reinforces the investment case tied to AI-driven storage demand. Seagate Is Riding One of AI’s Most Important Trends
• Positive Sentiment: Commentary highlighted that Seagate’s exceptional performance over the past year was driven by cloud providers needing more storage for AI infrastructure while available hard-drive supply remained constrained. Investors are interpreting management’s earlier comments about cloud demand as evidence that the AI-driven growth thesis was signaled in advance. What Was Seagate Telling You Before Its Stock Ran?
• Neutral Sentiment: The key unresolved issue is whether Toshiba’s capacity investment eventually creates a meaningful oversupply. For now, analysts generally view the threat as longer term rather than an immediate disruption to Seagate’s contracted revenue and AI-related demand. Why Western Digital and Seagate Stocks Are Rebounding
• Negative Sentiment: Toshiba’s plan to double HDD production initially triggered a sharp selloff in Seagate and Western Digital, reflecting investor fears that additional supply could pressure prices, margins, and future growth. Reports also cited insider selling, adding to short-term caution. Toshiba Is Doubling Hard Drive Output

Analyst Ratings Changes

STX has been the topic of several analyst reports. Wells Fargo & Company boosted their price objective on shares of Seagate Technology from $1,100.00 to $1,180.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Rosenblatt Securities lifted their target price on Seagate Technology from $1,300.00 to $1,400.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th. Barclays upped their price target on Seagate Technology from $1,000.00 to $1,250.00 and gave the company an “overweight” rating in a research report on Thursday, July 30th. Weiss Ratings reissued a “buy (b)” rating on shares of Seagate Technology in a research note on Monday, September 21st. Finally, Morgan Stanley raised their price objective on Seagate Technology from $1,035.00 to $1,187.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Twenty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $986.00.

Seagate Technology Stock Up 4.5%

The firm has a 50 day moving average of $854.66 and a 200 day moving average of $779.45. The firm has a market cap of $201.72 billion, a price-to-earnings ratio of 63.91 and a beta of 2.06. The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56.

Seagate Technology (NASDAQ:STX) last issued its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.10 by $0.61. The firm had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The company’s revenue was up 48.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.59 earnings per share. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, sell-side analysts predict that Seagate Technology Holdings PLC will post 35.7 earnings per share for the current year.

Seagate Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th will be paid a $0.74 dividend. The ex-dividend date is Thursday, September 24th. This represents a $2.96 annualized dividend and a dividend yield of 0.3%. Seagate Technology’s payout ratio is currently 21.33%.

Insider Activity at Seagate Technology

In related news, EVP Ban Teh sold 52,730 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $782.08, for a total transaction of $41,239,078.40. Following the transaction, the executive vice president directly owned 5,810 shares of the company’s stock, valued at $4,543,884.80. This represents a 90.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 97,889 shares of the firm’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $772.14, for a total transaction of $75,584,012.46. Following the completion of the sale, the chief executive officer owned 378,108 shares of the company’s stock, valued at $291,952,311.12. The trade was a 20.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 466,959 shares of company stock worth $378,840,741 over the last quarter. 0.51% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Baker Tilly Wealth Management LLC boosted its holdings in Seagate Technology by 4.6% in the third quarter. Baker Tilly Wealth Management LLC now owns 319 shares of the data storage provider’s stock worth $295,000 after acquiring an additional 14 shares in the last quarter. Eastern Bank increased its holdings in shares of Seagate Technology by 5.5% during the third quarter. Eastern Bank now owns 73,812 shares of the data storage provider’s stock valued at $68,080,000 after acquiring an additional 3,880 shares in the last quarter. Silverleafe Capital Partners LLC acquired a new position in shares of Seagate Technology during the third quarter worth approximately $820,000. QRG Capital Management Inc. raised its position in shares of Seagate Technology by 15.5% during the second quarter. QRG Capital Management Inc. now owns 21,081 shares of the data storage provider’s stock worth $20,343,000 after purchasing an additional 2,826 shares during the period. Finally, Envestnet Portfolio Solutions Inc. lifted its holdings in shares of Seagate Technology by 163.4% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 3,940 shares of the data storage provider’s stock worth $3,802,000 after purchasing an additional 2,444 shares in the last quarter. 92.87% of the stock is owned by institutional investors and hedge funds.

About Seagate Technology

Seagate Technology Holdings plc is a data storage technology company that designs, manufactures and supplies solutions for storing, managing and accessing digital information. Its product portfolio is centered on hard disk drives (HDDs), including high-capacity drives used in cloud data centers, enterprise environments, surveillance systems, network-attached storage and personal computing.

The company also offers solid-state drives (SSDs), storage systems, external storage products and related services.